Problem:
Rondeli Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Rondeli Company uses the FIFO method to compute equivalent units. Production and cost data for the month of March are as follows.
|
|
Percent
|
|
Production Data-Bicycles
|
Units
|
Complete
|
|
Work in process units, March 1
|
200
|
80%
|
|
Units started into production
|
1,250
|
|
|
Work in process units, March 31
|
300
|
40%
|
|
|
|
|
|
Percent
|
|
Cost Data-Bicycles
|
Units
|
Complete
|
|
Work in process, March 1
|
$19,280
|
|
|
Direct materials
|
50,000
|
|
|
Direct labor
|
25,500
|
|
|
Manufacturing overhead
|
30,000
|
|
|
|
|
|
|
Percent
|
|
Production Data-Tricycles
|
Units
|
Complete
|
|
Work in process units, March 1
|
100
|
75%
|
|
Units started into production
|
800
|
|
|
Work in process units, March 31
|
60
|
25%
|
|
|
|
|
Cost Data-Tricycles
|
|
|
|
Work in process, March 1
|
$6,125
|
|
|
Direct materials
|
30,400
|
|
|
Direct labor
|
15,100
|
|
|
Manufacturing overhead
|
20,000
|
|
Instructions
(a) Calculate the following for both the bicycles and the tricycles.
(1) The equivalent units of production for materials and conversion costs.
(2) The unit costs of production for materials and conversion costs.
(3) The assignment of costs to units transferred out and in process at the end of the accounting period.
(b) Prepare a production cost report for the month of March for the bicycles only.